economic Factors

Economic growth is expected to slow slightly from a strong 2023, and the global economy is expected to remain stable throughout 2024. Both slower GDP growth and strong inflation in Q1 2024 have appeared to correct in Q2. 

Flight activity

Flight operations declined 1.9% year-over-year in Q1 2024, but demand remained 16% above pre-COVID levels with steady and sustainable growth expected going forward.

Aircraft Manufacturers backlog

OEM backlogs have increased 4.8% year-over-year in Q1 2024. Strong orders were driven by high demand for business jets and low inventory of young pre-owned aircraft. Supply chain and labor constraints as well as delays in aircraft certification have resulted in lower-than-expected deliveries in Q1. 

TRANSACTION volume

New deliveries held steady in Q1 2024 while pre-owned transactions continued a trend of decline, although there has been an increase in activity. Sellers are looking to maintain post-pandemic value gains and buyers are waiting for values to return closer to historical levels. 

pre-owned INVENTORY

Aircraft listings increased 9.3% in Q1 2024, driven by listings of older aircraft which increased 11.4% in Q1 2024 vs 4.3% for younger aircraft. Inventory stood at 7.1% of the total fleet in Q1, and is expected to continue to increase throughout 2024.  

As inventory has increased, price negotiations between buyers and sellers have become more balanced, resulting in average bluebook values declining 1.1% in Q1 2024 compared to Q1 2023 following two years of value increases. Supply and demand seem to be well-balanced now and should support stable aircraft values.

aircraft VALUES

MARKET OVERVIEW